Fannie Mae posts huge 2008 loss, seeks new bailout

AFP on Yahoo ^ | 2/26/09 | AFP

[NormsRevenge]

WASHINGTON (AFP) – Troubled US mortgage finance giant Fannie Mae said Thursday it lost almost 60 billion dollars last year and expected to suffer more losses in 2009, and asked for a further 15.2 billion dollars in government aid.

The US government-controlled Fannie Mae reported a loss of 25.2 billion dollars in the fourth quarter driven mainly by the effects of a prolonged housing slump and a global financial crisis. It had a third-quarter loss of 29.0 billion dollars.

For the full year of 2008, the company posted a loss of 58.7 billion dollars, almost 27 times higher than the 2007 loss of 2.1 billion dollars.

Fannie Mae said it submitted a request Wednesday for 15.2 billion dollars from the Treasury "in order to eliminate our net worth deficit as of December 31, 2008."

"We expect the market conditions that contributed to our net loss for each quarter of 2008 to continue and possibly worsen in 2009, which is likely to cause further reductions in our net worth," the company said in a statement.

The fourth-quarter loss was driven mainly by 12.3 billion dollars in credit losses due to declining housing market conditions, 12.3 billion dollars in losses on derivatives and 4.6 billion dollars in writedowns of the value of its mortgage-backed securities, the statement said.

[NormsRevenge]

Thanks, Dems.

[NormsRevenge]

A view of Fannie Mae headquarters is seen in Washington, DC. Troubled US mortgage finance giant Fannie Mae said Thursday it lost almost 60 billion dollars last year and asked the Treasury Department for a further 15.2 billion dollars in aid. (AFP/Karen Bleier)

[ETL]

Must see video from 2004: 'Democrats Defend Fannie/Freddie from Regulation'. Watch it 'til the end. You will not believe it.

"We've been through nearly a dozen hearings where frankly we were trying to fix something that wasn't broke. Mr. Chairman we do not have a crisis at Freddie Mac and in particular at Fannie Mae under the outstanding leadership of Mr. Frank Raines."-Rep. Maxine Waters, 2004

http://www.youtube.com/watch?v=_MGT_cSi7Rs
_____________________________________________________

History of Fannie Mae scandal
"Fannie Mae announces its long-awaited restatement, erasing $6.3 billion in profit from 2001 through June 30, 2004."
http://www.boston.com/business/articles/2006/12/07/history_of_fannie_mae_scandal/?page=1
_____________________________________________________

Bailout Politics: The Congressional Dems who enabled this crisis are now being trusted to fix it?
Thomas Sowell, September 30, 2008
http://article.nationalreview.com/?q=OWE3OWU3OTExYzNlNTUzMzY2YmJmOWZjMzcwN2M1NjU=
_____________________________________________________

Guilty Party: ACORN, Obama, and the mortgage mess
Mona Charen, September 30, 2008
http://article.nationalreview.com/?q=Mzk4MmVkNzA1NGQ2NGRkZjQ2YjNmYjdlODZkMmQ4N2I=
_____________________________________________________

An ACORN Falls from the Tree: A congressional outrage
Ken Blackwell, September 29, 2008
http://article.nationalreview.com/?q=N2Y5MTc0ZTAyMmE1Mjk3NGE3OWRiY2FkMjZlN2YxYzc=

[TexasCajun]

That’s only 60,000 Million? Right?

[StormEye]

Sure —— here’s another 60 billion dollars. Please lose it as fast as you can. We’re so anxious to give keep giving you money to squander.

[raj bhatia]

New executive order:

Stop bugging us for more aid. We will provide the ink & paper for you to print whatever you need in your home or office.

Obambi

[nomorelurker]

12.3 billion in derivatives? What were they doing with/involved with them?

[Kackikat]

This is the RAPE of the American Taxpayer, and it’s being done legally while we watch.....we are saps for allowing this nonsense. How can 91% of Americans be paying their mortgages on time, and ALL these institutions be losing that much money...less than 9% of all mortgages are late or in default, and all aren’t foreclosed yet, plus if you go to the government websites “Portal to Homes”..to look for foreclosures there is not much to choose from. I get Bid4Assets auctions and sales, and not much too choose from, there is something seriously wrong with this picture. AND EVERY TIME I see a possiblity in a foreclosure it has a contract pending...what is going on?? This is just one agency, and look at banks and mortgage companies involved...these figures aren’t right, we need to do some investigating on numbers??? Anyone else see this as fraudulant information???

I’m not buying, it’s about research and I’m seeing a truth not being displayed here.

[Psycho_Bunny]

Incompetence at virtually a treasonous level.

[TomasUSMC]

Anyone who pays taxes to obami is paying to have themselves raped.

[denydenydeny]

At this point I am almost willing to let the Chinese take over the country because at least under them we could be assured that the entire management team of Fannie and Freddie would be summarily executed.

[jedi150]

Incompetence at virtually a treasonous level.

Corruption in unheard of amounts in the history of the world.

Wonder how much Tax money is sitting in Gold in offshore Banks?

[Huskrrrr]

Anyone who pays taxes to obami is paying to have themselves raped.

(Whack!) Thank you sir, may I have another?

[TASMANIANRED]

Prosecute now.

[GOPJ]

Sure —— here’s another 60 billion dollars. Please lose it as fast as you can. We’re so anxious to give keep giving you money to squander.

It's only money - OUR money. Our hard earned money... OMG - I hate Fannie Mae.

[HereInTheHeartland]

Many thanks to Barney Frank for destroying a once conservative, good company.

[1010RD]

Time to clawback the executive bonus’ of the last 12 years.

[Cowboy Bob]

Time to clawback the executive bonus’ of the last 12 years.

That was the first thing I thought...

[RayChuang88]

There's this US$10 to US$16 TRILLION in assets owned by American citizens and companies sitting in offshore financial centers for income tax reduction reasons. Why aren't we figuring out a way to bring back all that liquidity to the USA, which would likely end the economic crisis almost overnight?